Impact of US tariffs; China’s yuan dived, record fall in Mexican peso and Canadian dollar
New Delhi| The effect of American tariffs has been seen on the currencies of China, Mexico and Canada. A record decline was seen in the currencies of all three countries. According to the report, China’s yuan reached a record low in offshore trading on Monday. After US President Donald Trump’s decision to impose tariffs, Mexico’s peso and Canada’s dollar saw record declines over many years. The currencies of both have fallen to lower levels than in many years. This has raised fears of an escalation of the trade war.
Earlier, the White House had said on Friday (January 31) that a duty (tariff) of 25 percent on imports from Canada and Mexico will be applicable from Saturday, February 01. Along with this, 10 percent tariff will be imposed on goods imported from China. However, the White House did not provide any information about whether there would be any relaxation in these measures, as these tariffs could result in goods becoming significantly more expensive for American consumers. President Donald Trump had recently announced these tariffs.
Republican leader Trump is claiming to impose tariffs to ensure greater cooperation from countries to prevent illegal immigration and smuggling of chemicals used for ‘fentanyl’. However, he has also said that its objective is to promote domestic manufacturing.
Caroline Levitt announced
White House press secretary Caroline Levitt had said, ‘From February 01, these fees will be in place. These promises were made by the President and are now being fulfilled Trump had said he was considering continuing exemptions for oil imports from Canada and Mexico, but Levitt said he had no information to share about any possible cuts the president’s decision to make.
Canada, Mexico counterattacked
Meanwhile, Canadian Prime Minister Justin Trudeau said on Friday that if Trump implements tariffs, Canada is ready to give a befitting reply. Mexican President Claudia Shanbom said that Mexico has ‘Plan A, Plan B, Plan C’ for whatever decision the US government takes in the event of tariffs being imposed.
